-The Table Above Gives a Nation's Investment Demand and Saving

question 237

Multiple Choice

$$\begin{array} { c c c c c } \begin{array} { l } \text { Real interest rate } \\\text { (percent per year) }\end{array} & \begin{array} { c } \text { Investment } \\\text { (billions of }\end{array} & \begin{array} { c } \text { Private saving } \\\text { (billions of }\end{array} & \begin{array} { c } \text { Net taxes } \\\text { (billions of }\end{array} & \begin{array} { c } \text { Government expenditures } \\\text { (billions of }\end{array} \\\text { 2005 dollars) } & \text { 2005 dollars) } & \text { 2005 dollars) } \\\hline 3 & 60 & 20 & 40 & 20 \\4 & 50 & 30 & 40 & 20 \\5 & 40 & 40 & 40 & 20 \\6 & 30 & 50 & 40 & 20 \\7 & 20 & 60 & 40 & 20\end{array}$$
-The table above gives a nation's investment demand and saving supply schedules.It also has the government's net taxes and expenditures.The loanable funds market is in equilibrium when the real interest rate is

• A) 4 percent.
• B) 5 percent.
• C) 6 percent.
• D) 7 percent
• E) 3 percent

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